India · Delayed Price · Currency is INR Zee Entertainment Enterprises Earnings Call Transcripts
Fiscal Year 2026
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Digital business achieved record revenue and operational profitability, while network share and content investments drove growth despite advertising headwinds from geopolitical tensions. Strategic investments in VFX and live events, along with cost optimization, position the company for medium-term growth.
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Digital business posted its first positive EBITDA, with revenue up 73% year-on-year, while broadcast and music segments maintained strong market positions. Profit after tax doubled sequentially, and the company remains optimistic about advertising recovery and sustained digital growth.
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Q2 FY26 saw strong digital growth, with ZEE5 revenues up 32% YoY and EBITDA losses narrowing sharply. Content investments drove market share gains, but higher costs compressed margins to 7.4%. Management expects H2 recovery in ad revenues and margin improvement.
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Q1 FY26 saw stable profitability with EBITDA margin at 12.5% and 14% YoY PAT growth, driven by digital revenue and cost optimization. ZEE5 revenues rose 30% YoY, and the company maintained its 8% ad growth guidance, targeting 18%-20% EBITDA margin for FY26.
Fiscal Year 2025
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Transformation efforts focus on omnichannel content, regional language expansion, and digital growth, with ZEE5 content tripling and profitability targeted by FY2026. Financials show improved margins and cash, while capital infusion via warrants aims to strengthen competitiveness. Enhanced governance, transparency, and a robust content pipeline support medium-term growth goals.
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Profitability improved in FY 2025 with a 50% reduction in ZEE5 losses and a 390 bps EBITDA margin increase, despite an 11% decline in ad revenue. Management targets 8%-10% revenue growth and 18%-20% margins in FY 2026, focusing on FTA re-entry, digital expansion, and content innovation.
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Margins expanded year-over-year despite macroeconomic headwinds and weak FMCG ad spend, with subscription revenues up 8.2% and EBITDA margins improving. The company remains focused on accelerating revenue growth, maintaining strong liquidity, and managing risks from legal and market uncertainties.
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EBITDA margin rose to 16% in Q2 FY25, driven by cost discipline and improved digital performance, while subscription revenue growth offset ad revenue decline. Cash position doubled YoY, and the company remains optimistic about festive season ad recovery and continued margin expansion.
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Q1 FY25 delivered improved margins and profit, driven by cost optimization and steady subscription growth, despite weak ad revenue due to sports and elections. Fundraising via FCCB will support future growth, and ZEE5 losses narrowed significantly.